Most people don’t stop to think how green cryptocurrencies are. It’s more or less natural because coins that exist only as bits on the internet do not suggest any kind of obvious ecological impact in the real world. Before we talk about Ripple’s XRP, let’s take Bitcoin, mother of all coins, as an example. Is it green?
It uses more than $300,000 USD of electricity daily. According to some estimations, Bitcoin is burning as much energy as Ireland every year, and that’s just one-third of the whole cryptosphere. How does that happen?
Creating blocks for Bitcoin’s blockchain needs solving a complex mathematical problem called SHA-256 collision. This problem is so complex that normal personal computers can’t manage it fast enough to support the network. That’s why most serious miners use custom hardware to do this calculation. The computation is very processor-intensive, and that takes energy. A lot of energy. Every mining machine is at 100% every day, of every week, of every month.
That’s not everything. As time goes by, Bitcoin’s protocol is designed to do two things: to increase the SHA-256 calculation level of difficulty and to produce half as many coins per block. In the beginning, every new block produced 50 new bitcoins.
After two halvings in 9 years, blocks produce 12.5 coins right now and by May 2020, the number will go down to 6.25. If you put both things together, it means that as Bitcoin gets older, it takes a lot more energy to produce fewer and fewer blocks and coins. And the network is already sucking a huge amount of energy.
The idea behind the protocol is to ensure that bitcoins are not only limited but also scarce so that there is no inflationary pressure on the token.
SAP : Blockchain’s Energy Crisis
I Great Example of XRP efficiency
— 𝗕𝗮𝗻𝗸 𝑿𝑹𝑷 (@BankXRP) November 28, 2018
Is it worth it, though? Well, it depends. From the point of view of keeping the Bitcoin network going, it’s 100% worth it. But if you’re a miner you need to profit from your activity and that depends greatly on the token’s price. According to some estimations, it takes $7,000.00 worth of electricity to produce a single Bitcoin, but that fluctuates widely depending on the country you live in because the cost of power is very different everywhere. But at Bitcoin’s current price (just above $4k), many miners around the world are taking losses. At least until the price goes over $7,000 again.
All this begs a question, can Bitcoin really become the future’s currency if it’s not green? And, if not, what other options do we have?
There’s good news in this regard. We have the blockchain 3.0. In many of these projects all tokens were pre-mined before they entered the market so the energy expenditure is not as high because it used just to keep the network’s nodes online; also because block production in these new blockchains is nowhere near as complex as it is in Bitcoin.
The poster boy currency when it comes to being green is probably Ripple because its consensus mechanism is relatively light and all the XRP tokens are in existence already. And this is not an “exotic” currency. Currently, it’s the world’s second coin by market capitalization and some bold observers believe that it’s the only coin that really has a chance to give Bitcoin a run for its money sometime in the future.
So you want to be in the cryptosphere and take care of your planet at the same time? Then Ripple’s XRP is a good option.
For real-time trade alerts and a daily breakdown of the crypto markets, sign up for Elite membership!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image Courtesy of Pixabay.
Wirex adds WAVES to its Platform
London UK, January 10th2018 – Wirex, the UK FCA-licenced digital money platform that facilitates the seamless conversion of cryptos and traditional currency, has joined forces with Waves to add the in-demand WAVES token to its platform. The WAVES token holds a unique place in the cryptocurrency spectrum because its underlying utility addresses some critical hurdles that hinder the mainstream adoption of blockchain technology, such as scaling, interoperability, and security.
Sasha Ivanov, CEO and Founder of Waves Platform, says, “We see Waves as the bridge that will facilitate the transition from web 2.0 to web 3.0. The goal of our team is to put tools in place that will allow both enterprise and individuals to easily implement their own blockchains while improving the UX of DApps and blockchain infrastructure.”
Like Wirex, the Waves Platform was purpose-built, and since its launch in 2016, Waves has become one of the fastest, most secure and user-friendly public blockchain platforms available.
In terms of its underlying protocol Waves is closer to Ethereum than Bitcoin. Ethereum is used to develop various DApps, but it can be expensive due to its Smart Contract language complexity and Gas fees that can grow dramatically over time. Waves Smart Contracts are simplified – they are a plug-and-play solution with fixed fees. Another improvement is the Waves-NG protocol with throughput of up to 1000 TX/s.
Make Profit in the Bear Market? Recommend the 1st Cryptocurrency Futures Exchange – Bexplus
In 2018, Bitcoin has declined from $20,000 to $3100. Is $3100 the bottom of BTC and will the bull come in 2019? I don’t think there will be a bull in the cryptocurrency market next year. Instead, it may keeps “steady” price fluctuation, which means Bitcoin price goes up and down but hard to rebound to $20,000 in 2019. So is it possible to earn money during the cryptocurrency bear market? Absolutely YES!
If you’ve traded BTC spot before, you must know that you can only make profits when its price rises. Different from the spot trading, Bitcoin futures contract as well as other altcoins futures trading are popular among investors, because it gives investors chance to earn money even during the bear market.
What is Cryptocurrency Futures Trading?
Cryptocurrency futures contract enables you to enter a larger trade with a small number of assets that you possess. You can earn money in both directions. For example, buy/long BTC means that speculator can place a “bet” on BTC rising. On the contrary, sell/short BTC means to “bet” on BTC falling. Besides, with X times leverage added, investors can enter a large trade though they hold a smaller amount of BTC. Some investors, especially the beginners may think that futures trading is relatively high risk. But different from the traditional futures contract, Perpetual contract allows you to set stop-profit…
Introducing Interdax: The fastest new crypto trading platform
Considering the rapid development of cryptocurrencies, as well as the increase in their popularity and trading volumes, it is also necessary for crypto-related services to advance as well. As modern problems require modern solutions, the newest services can often make quite a difference, if they are done right.
One such service is Interdax — a new, international crypto trading platform that focuses on derivatives, primarily perpetual swaps, and futures. Interdax is a big project that has been under development for over 18 months. After spending so much time working on it, developers are finally ready to push it out of the stealth mode, and into the market.
The platform itself expects to bring massive change to the market through superior technology and innovation. In fact, many believe that Interdax might become a direct competition even to big names such as Bitmex within a few months, mostly due to their excellent offers, such as 100x leveraged perpetual swap contracts with the underlying coin as collateral.
Team & Tech
Interdax aims to become a Wall Street-grade derivatives exchange, and to achieve this, the platform needed to hire a team of experts with a long history in finance and development. The majority of the team members came from well-known financial institutions of the City of London, and even Wall Street itself. This also shows the team members’ faith in the project,…
3 Coins with the Largest Potential in 2019
Do or Die: 3 Crypto Projects that Really Need to Deliver Soon
3 Cryptos To Blow Up In The Next Bull Run
Altcoins2 weeks ago
TRON (TRX) Expectations for 2019
Blogs2 weeks ago
Will 2019 be the Year of XRP?
Blogs2 weeks ago
XRP vs ETH: Which Coin Is A Better Investment?
Bitcoin2 weeks ago
What Will Happen First: BTC 2k or 5k?
Blogs2 weeks ago
Will Ethereum Hit $100 or $200 Next?
Don't Miss6 days ago
Wirex adds WAVES to its Platform
Bitcoin2 weeks ago
Is Bitcoin Spiraling Down to a New Bottom?
Bitcoin1 week ago
Bitcoin Grows Beyond $4,000